3rd Annual Symposium
on EU-Asia Relations in Financial Services
Promoting Convergence and Investments
in EU-Asian Financial Markets

FINAL PROGRAMME
26-27 May 2016, The Westin Beijing Financial Street

Page | 2Objective:
Following the success of two previous editions in Singapore (2014) and Hong Kong (2015),
the 2016 Symposium on EU-Asia Relations in Financial Services will take place in Beijing, 2627 May. China holds the G20 Presidency this year and celebrated the 40th anniversary ofthe EU-China partnership last year. The symposium provides a unique opportunity forglobal, European and Asian policy-makers, leading academics and industry executives tomeet and discuss issues affecting the functioning of EU-Asian trade, investment, andfinancial services.
The cornerstone of the annual event is an informed and open exchange of ideas among
decision-makers in small group discussions and plenary sessions, as well as during
networking events. It offers many opportunities for interactive and frank dialogue, which isconducted under the Chatham House Rule. Discussions are then summarised and presented
on the final day of the Symposium and debated in a plenary session.
Programme format:
A high-level symposium closed to the media with a dinner networking events, small groupsessions, panel discussions and keynote speeches in plenaries.
Delegate profile:
This event open to around 100 participants (high-level regulators, policy makers, academics
and sell-side and buy-side firm representatives). Detailed information about the registration
conditions here.
Venue:The Westin Beijing Financial Street
Address: 9B, Financial Street, Xicheng District, Beijing, China

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THURSDAY 26th MAY 2016
Discussions and Dinner________________________________________________________________________

Venue: The Westin Beijing Financial Street (Treasury III, Level 2)
08:30-09:00

Check-in

09:00-09:05

Welcome and Introduction
Karel Lannoo, CEO, CEPS

09:05-09:25

Opening Keynote
Hans-Dietmar Schweisgut, Ambassador of the European Union to China

09:25-09:45

Introductory Keynote
Andrea Enria, Chairperson, European Banking Authority (EBA)Page | 4

09:45-10:45

Session 1: Fundamental Review of the Trading Book (FRTB): What
Implications for Banks’ Business Models?

The financial crisis raised questions as to the level of capital required against banks’ tradingbook exposures. In line with the G20 leaders’ commitments, the Basel Committee on
Banking Supervision (BCBS) proposals on FRTB aim at readdressing the allocation ofregulatory capital between the banking and trading books by introducing “presumptivelists”, and making banks properly account for the market risk of their trading activities on adesk-by-desk basis. The FRTB proposal marks a shift from the use of the value-at-risk (VAR)
to expected shortfall (ES) in the banks’ internal models, so as to better capture tail risks. It
also introduces extended “liquidity horizons” for each risk factor category and prescribes recalibrated risk weights for the buckets in each asset class. Investment banks argue thatthese measures will most likely cause capital increases in several business lines, such as
high-yield corporate and sovereign debt, small-cap equities, securitized products as well as
commodities and foreign exchange hedges, with broad implications for market liquidity.
Are these measures sufficient to ensure the resilience of banks to volatile marketconditions? Will these measures force banks to engage less in principal trading activities due
to increasing costs? Are these costs going to be transferred to issuers and/or end investors?
Is market liquidity going to be impacted, and in which ways? Will the competitiveness ofglobal banks be affected?
Speakers:
 Andrea Enria, Chairperson, European Banking Authority (EBA) Toshio Tsuiki, Deputy Director General, Financial System and Bank Examination
Department, Bank of Japan (BOJ) Wei Wang (Steve), Managing Director, Head of Fixed Income Research, Bank of China
International (BOCI) Geng Xiao, Professor of Practice in Finance and Public Policy, School of Business andFaculty of Social Sciences, University of Hong Kong (HKU)
Moderated by: Karel Lannoo, CEO, CEPS
10:45-11:10

Coffee BreakPage | 5

11:10-11:30 Presentation of the Policy Report on Improving the Investor Base for Local
Currency Bond Markets in China, India and Indonesia which was prepared by
the Centre for European Policy Studies (CEPS), within the framework of theEmerging Market Dialogue on Finance (EMDF), which is implemented by theGerman Agency for International Cooperation (GIZ). With contributions fromthe Research Bureau of the People’s Bank of China, the Observer Research
Foundation in India, and the Economic Research Institute for ASEAN and EastAsia.
Introduced by Achim Deuchert, Director, Emerging Markets Dialogue on
Finance (EMDF), German International Cooperation (GIZ)
Presentation by Diego Valiante, Head of Financial Markets and Institutions,CEPS
11:30-12:30

Session 2: Corporate Bonds in Asia: Steps Towards an Integrated Regional
Market? (Topic 1)

Since 2008, corporate bonds markets have grown rapidly, though unevenly, across Asia.
Increasing demand from foreign investors in ‘search for yield’, as well as a number ofregulatory initiatives at national and regional level, have fuelled corporate issuance. Asia’scorporate bond markets are highly fragmented and bond transactions are very limited
because of capital and currency controls, as well as regulatory impediments and lack ofinfrastructure. Following up on the case studies for China, India and Indonesia, as well as thegeneral findings from the poster presentation, the panel discussion will also discussdevelopments in the EU. The EU is also looking at the balance of equity vs debt issuance,
how cross-border debt corporate financing could be improved and opened to a wider set ofcompanies.
Can harmonisation of common standards or mutual recognition of issuing procedures,
settlement process, listing and disclosure, documentation, secondary market practices,among others, be a game changer? Which reforms are mostly needed for the corporate
bonds to become a viable non-bank funding source? Which incentives would result inbroadening the investor base? How to make secondary markets more liquid, transparent
and interconnected? Which concrete initiatives have been taken towards deepening
integration in the region, e.g. mutual recognition of prospectus requirements? What can belearned from EU and US experience in their efforts to stimulate and integrate corporatebond markets?
Speakers:
 Yu Li, Director, Financial Markets Division, Research Bureau, The People's Bank of China(PBoC)
 Pierre Van Peteghem, Group Treasurer, Asian Development Bank (ADB) Katie Rowbottom, Head of FI eTrading APAC, Bloomberg
 Mark Austen, CEO, ASIFMA
Moderated by: Steve Garton, Editor, IFR Asia, F&R Financial Fixed Income, Thomson Reuters

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12:30-13:00 Small Group Sessions on Topic 1
Participants will be divided into small groups in order to discuss Topic 1/2 in greater detail.
Within each group, a Discussion Leader will moderate and ensure that the key views on thetopic are explored and that answers to specific questions are provided; a Rapporteur willkeep record, and will then convey this back to the Rapporteurs’ meeting.
Discussion leaders: Lorenzo Bencivelli, Financial Attaché, Embassy of Italy to the People’s Republic of China,
Bank of Italy representative Mark Austen, CEO, ASIFMA Diego Valiante, Head of Financial Market and Institutions, CEPS
Rapporteurs: Ashley Lee, Manager, Policy and Regulatory Affairs, ASIFMA Cosmina Amariei, Researcher, CEPS
 Linde Jing, Research Assistant, International Monetary Institute (IMI), Renmin Universityof China
 Yin Chen, Research Assistant, International Monetary Institute (IMI), Renmin Universityof China
13:00-14:00

Buffet Lunch

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14:00-15:00

Session 3: The FinTech Revolution: How Will It Reshape Finance? (Topic 2)

Innovative financial technologies are changing the way we look at financial markets.
Blockchain technologies, robot advisory services, algorithms-based portfolio management,
mobile banking and many other tools are re-shaping the whole financial industry (banking,investment and insurance) and claim to produce disruptive effects in market structure. Dataanalytics (e.g. risk management), IT security and infrastructure for capital market
transaction, bank credit and corporate financial information, personal financial
management are only some of the areas where new communication and information
technologies are only some of the areas affected by this revolution.
How are financial technologies developing in Europe and Asia? What role can fintech playfor financial inclusion? Are they capable to deliver disruptive changes in the plumbing of thefinancial system? Are current financial institutions able to take on the challenge or will
newcomers enter the market and quickly gain market share? Who are the main competitorsof traditional financial institutions and how the latter will change their business model tocope with this new influx of competitive pressures? Are European and Asian regulators andsupervisors following properly this phenomenon? What are the major challenges insupervising these new tools and market players?
Speakers:
 Benedicte Nolens, Senior Director & Head of Risk and Strategy, Hong Kong Securities
and Futures Commission (SFC) Alex Lin, Head of Infocomm Investments Pte Ltd , subsidiary of Infocomm Development
Authority of Singapore
 Ben Shenglin, Professor of Banking & Finance, Dean, Academy of Internet Finance,Zhejiang University
 James Chang, Managing Partner, China Financial Services Consulting Leader, PwC
Moderated by: Nickolas Reinhardt, Director, Afore Consulting

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15:00-15:45

Small Group Sessions on Topic 2

Participants will be divided into small groups in order to discuss Topic 1/2 in greater detail.
Within each group, a Discussion Leader will moderate and ensure that the key views on thetopic are explored and that answers to specific questions are provided; a Rapporteur willkeep record, and will then convey this back to the Rapporteurs’ meeting.
Discussion leaders: Ben Shenglin, Professor of Banking & Finance, Dean, Academy of Internet Finance,
Zhejiang University
 Nickolas Reinhardt, Director, Afore Consulting Wayne Arnold, Executive Director – Head of Policy and Regulatory Affairs, ASIFMA
Rapporteurs: Willem Pieter de Groen, Research Fellow, CEPS Ashley Lee, Manager, Policy and Regulatory Affairs, ASIFMA Linde Jing, Research Assistant, International Monetary Institute (IMI), Renmin Universityof China
 Yin Chen, Research Assistant, International Monetary Institute (IMI), Renmin Universityof China
15:45-16:00

Coffee breakPage | 9

16:00-17:00

Session 4: Modern Payments for the 21st Century - How Will The
Landscape Look Like?

The payment infrastructure is critical to the functioning of the economy. Payments
ecosystems are inherently complex, with numerous market players, such as operators ofnational payment infrastructures, cards schemes, banks and non-banks, B2B and P2P
payments providers, processors and merchant acquirers, payment gateways and terminals
etc. Market, regulatory and technological/digital forces are currently transforming thepayments landscape. In the recent years, a growing number of fintech companies and nonbank payment providers with alternative business models have emerged. The incumbents
have now strategic choices to make: to compete and/or collaborate. Moreover, payment
data analytics is presenting significant opportunities to enhance the value proposition andexplore multiple revenue streams.
In the EU there is now in place a new regulatory framework for payments: capping the fees
for credit and debit card payments - similar to Australia. In addition, the revised Payment
Services Directive (PSD2) widens the scope of the PSD by covering new services and players,
enabling their access to payment accounts. Japan, Korea and other Asian jurisdictions havealso developed their own regulatory frameworks for non-bank payments. How will theestablished payment infrastructure networks going to react to the rise of new payment
solutions (mobile, contactless, instant payments, blockchain) and market trends(consumer/retail vs wholesale/corporate)? How should policy makers balance competition
against the integrity of the payment system? Should any policy response be regional orglobal?
Speakers:
 Yun Dong, Deputy General Secretary, Research Center of Payment and Settlement,
Institute of Finance and Banking, Chinese Academy of Social Sciences (CASS) Esmond Lee, Executive Director, Financial Infrastructure, Hong Kong Monetary
Authority (HKMA) Helmut Wacket, Head Market Integration Division, DG Market Infrastructure andPayments, European Central Bank (ECB) Nellie C. Dagdag, Managing Director, Global Industry Relations, DTCC
Moderated by: Dora Neo, Director, Center for Banking & Finance Law, National University ofSingapore (NUS)
17:00-18:00

Rapporteurs Meeting (Discussion Leaders and Rapporteurs only)Page | 10

THURSDAY 26th MAY 2016
Discussions and Dinner________________________________________________________________________

Venue: The Westin Beijing Financial Street (Treasury I, Level 2)
19:00-19:15

Cocktail Starts

19:15-19:20

Introduction
Nickolas Reinhardt, Director, Afore Consulting

19:20-19:45

KeynoteWu Xianting, Deputy Director, Financial Market Department, The People’s
Bank of China

19:45-20:10

KeynoteJonathan Taylor, Vice-president, European Investment Bank

20:10-20:30

In Conversation With Jing Ulrich, Managing Director and Vice Chairman,
Asia Pacific, JPMorgan Chase (by Mark Austen, CEO, ASIFMA)

20:30-21:30

Dinner

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FRIDAY 27TH MAY 2016
Discussions________________________________________________________________________

Venue: The Westin Beijing Financial Street (Treasury III, Level 2)
08:15-08:45

Check-in08:45–09:00

Presentations & Discussion of the Main Findings of the Break-out Session
Discussions on Topic 1 and Topic 2
by Diego Valiante, Head of Financial Markets and Institutions, CEPS

09:00-09:05

Introduction of Keynote Speakers
Wei Benhua, Senior Director, IMI Academic Committee, Renmin Universityof China

09:05–09:20

KeynoteBenjamin Angel, Director, Directorate Treasury and Financial Operations,
DG ECFIN, European Commission

09:20–09:35

KeynoteQi Bin, Director-General, Department of International Affairs, China
Securities Regulatory Commission (CSRC)

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09:35–10:45

Session 5: Asia’s Stock Markets: Does Opportunity Still Await?

Asia’s stock markets have been an important source of funding for corporates and theirpotential in terms of greater capacity and liquidity is still strong. Recent volatility in somemarkets have raised many questions about how sustainable is the current market structure
and what needs to be done. Is there room for improvement in areas such as securities
regulation, corporate governance, products and market infrastructure?
What can the State do to improve diversification of investors in the stock markets? What isreally driving price volatility in stock markets? What can Asia learn from Europe (if anything)
about free movement of capital and regulation of markets? Is the pricing based on
idiosyncratic factors rather than economic and corporate fundamentals?
Shouldgovernments intervene during times of extreme volatility, and how? Once in place, howquickly can exceptional measures be lifted? Should further integration of equity markets
across Asian countries be actively pursued at this stage?
Speakers:
 Fuzhong Liu, Vice Director of Strategy and International Relations, Shenzhen Stock
Exchange (SZSE) Tae Yoo, Managing Director, Head of Client & Marketing Services, Hong Kong Exchanges
and Clearing (HKEX) Alexander den Ruijter, Senior Risk Officer, European Stability Mechanism (ESM) Wang Jiangyu, Fellow and Associate Professor, Centre for Banking & Finance Law,
National University of Singapore (NUS) Daniel Gros, Director, CEPS
Moderated by: Diego Valiante, Head of Financial Markets and Institutions, CEPS
10:45-11:30 Coffee BreakPage | 13

11:30-12:45 Session 6: Shadow Banking and Asset Management in Asia: Which Way
Forward?
Addressing the risks in the shadow banking system remains one of the core elements on theG20 agenda. Being outside the formal banking sector is associated with a weak safety net,such as guaranteed deposit insurance schemes or central bank liquidity/lender of last resort
facilities. While the size of the shadow banking sector in Asia is smaller than in the US orEurope, it is growing at a very quick pace as it relies on a very simple business model. The
activities of the non-bank financial institutions (NBFIs) in Asia are predominantly domestic
and involve the offer of financial services to individuals and firms that may lack access to“traditional” sources of finance or simply look for more rewarding investment opportunities.
Local and foreign asset managers are often direct competitors. The industry (particularly inAsia) is expected to compete directly with traditional banking activities, as a growing
segment of medium-high net worth individuals, as well as new pools of insurance andretirement assets under management, are increasingly using these services. At EU level, anumber of initiatives were taken in order to monitor and address the risks inherent to theactivities carried outside the formal banking sector, such as transparency requirements.
What is the nature of ‘shadow banking’ in Asia and how does it differ from Europe? Is‘shadow banking’ the correct terminology to describe the phenomenon? How does it relate
to the formal banking sector? Does it pose a serious threat to financial stability in the shortor long-term? Should regulators increase their oversight and, most importantly, how? Are
Asian and European asset managers delivering better investment opportunities via shadowbanking tools?
Speakers:
 Shunsuke Shirakawa, Deputy Commissioner for International Affairs, Financial Services
Agency, Japan (FSA) Peter Kruschel, Director, International Directorate, Federal Financial Supervisory
Authority, Germany
 Michael Taylor, Managing Director, Chief Credit Officer Asia Pacific, Moody's Investor’sService Qin Xu, Partner and Managing Director, The Boston Consulting Group
Moderated by: Karel Lannoo, CEO, CEPS
12:45-13:00

Closing Remarks
Karel Lannoo, CEO, CEPS
Mark Austen, CEO, ASIFMA

13:00-14:00

Closing Buffet Lunch